Matching the Fed’s actions yesterday, the ECB’s Mario Draghi has just stated in his press conference that the ECB ‘may’ act in the coming weeks.
Translation: Draghi doesn’t have the power to print anything without Germany, and Mr. Market is not happy.
Gold and silver sold off hard on the news/COMEX open, with silver seeing it’s second consecutive $1 smack immediately on the CRIMEX open.
Silver has held $27 (and has rebounded to $27.40)- an extremely impressive feat considering a 2-day cartel raid on the heels of the FOMC statement combined with Draghi’s epic failure could not induce silver to even approach its lows near $26 much less completely break down. [Read more...]
Gold was off less than 1% on Wednesday, its biggest drop in 3 weeks, as the Fed didn’t deliver the sparks for QE3’s fireworks. It did signal that further bond buying could be in store to help the US economic recovery that had lost steam this year. Fed officials commented that the economy had “”decelerated somewhat,” a change of tone from its previous assessment in June when the economy was “expanding moderately”.
Investors now look to the European Central Bank’s rate decision at 1145 GMT. If “Super” Mario Draghi doesn’t come out with a loaded arsenal (bold intervention), then the markets will be disappointed. Mario Draghi will be confronting his colleague and nemesis in the ECB Jens Weidmann. [Read more...]
Welcome to Capital Account. The Federal Reserve released its interest rate decision today: extremely low rates until late 2014. Also, tomorrow, the ECB council meets about possible bond purchases and how to react to the financial turmoil in Europe. We talk to Peter Tchir, founder of TF Market Advisors, about what to expect from the central banks.
Also, the manufacturing scenario in Europe appears grim. Eurozone factory activity in July fell at its steepest rate in more than three years, according to Markit Economics’ Purchasing Managers Index. German manufacturers suffered the largest fall in new export orders of any Euro-zone country. Could this mean trouble in Europe’s economic powerhouse? We will talk to Peter Tchir about how this fits into the crisis calculus. [Read more...]
The South Carolina owner of Atlantic Bullion & Coin, Inc. has plead guilty to misallocation of $90.1 million of funds that were supposedly invested in silver bullion.
The CFTC has called the theft a ‘Ponzi Scheme’, as 945 investors had sent the Bullion firm over $90 million to purchase contracts of silver bullion. Atlantic failed to purchase any silver at allfor their investors over the last 12 years.
If you don’t hold it, you don’t own it!
A former Anderson County, South Carolina councilman and past national commander of the Sons of Confederate Veterans entered a guilty plea in U.S. District Court in connection with a Ponzi scheme in which an estimated 945 investors in 16 states were duped into investing a total of $90.1 million in alleged silver contracts. [Read more...]
HSBC and JP Morgan each reported massive adjustments of over 100,000 ounces out of Registered (dealer) vaults Tuesday, and Scotia Mocatta reported another 600,000 ounce withdrawal from eligible vaults!
Total Eligible silver inventories fell below 100 million ounces for the first time in months, and Total COMEX silver stocks dipped under 139 million ounces.
COMEX WAREHOUSE SILVER INVENTORY UPDATE 8/1/12 [Read more...]
Fed leaves ZIRP through end of 2014
No new easing announcement, no extension of ZIRP or TWIST
Gold and silver plunging- silver last at $27.30, gold to $1593
‘Committee will provide additional accommodation as needed‘
Translation: Verbal MOPE is working well enough for now, QE won’t be officially announced until an upcoming Sunday night when the financial system is moments away from total collapse on the Asian open.
Full FOMC Statement below:
I just looked at the current USGS Gold Mineral Industry Survey, and I have to say April, 2012 saw the most gold leave the shores of the U.S. compared to the previous months. [Read more...]
Forget ‘fat finger’, today’s auto-sell dump has been correctly labeled algos gone wild.
Premarket info discusses this morning’s rogue algorithm that wreaked havoc on as many as 148 stocks (as well as silver which plunged $1 almost instantly) on today’s open for 30 minutes straight. [Read more...]
Spiegel has released an EPIC report on the escalating LIBOR scandal, calling the manipulation an ‘organized fraud’- i.e. A MANIPULATIVE BANKING CARTEL!
The difference between a few Barclay’s traders submitting a few false LIBOR rates, and an organized cartel fraud ring is gargantuan.
We continue to state that the tsunami continues to build, and will wash ashore onto US banks (likely BOA and JPM) in the coming weeks.
There have been plenty of banking scandals, but none quite like this: Investigators and political leaders believe that the manipulation of the Libor benchmark interest rate was the result of organized fraud. Institutions that participated could face billions in fines and penalties. [Read more...]
Pascua-Lama woes prompt S&P to lower Barrick Gold’s credit rating
Higher forecast capex spending, combined with delays and other risks at the Pascua Lama project, prompted Standard & Poor’s to downgrade Barrick’s credit ratings.
Standard & Poor’s has downgraded Barrick Gold from “A-” to “BBB+” with a negative outlook, citing higher forecasted capital spending, as well as “execution risks surrounding Pascua-Lama”. [Read more...]
Mitt Romney was greeted Tuesday by a group of Polish Ron Paul supporters.
In this MUST WATCH Fox News interview, the Polish Ron Paul supported told Fox News that ‘President Obama is a Socialist, in Poland, Obama would be considered a Communist‘ and that ‘There are no differences between Obama and Romney in reality, but there is a HUGE difference between Ron Paul and everybody‘.
Gold and silver were smashed on today’s COMEX open, with silver dropping $1 down a mine shaft (a $1 drop in a single tick on the hourly chart) to $27, and gold smashed through $1600 to $1593.
While we expected a raid today on the August FOMC statement, the fact that this massive raid was unleashed on the COMEX open was unexpected, and likely means 1 of 2 things: [Read more...]
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Gold was still hovering in a narrow range on Wednesday, as investors await monetary policy decisions from the US Federal Reserve (1815GMT) and the European Central Bank (tomorrow), which will determine the direction of markets.
A Fed decision to launch QE3 would increase the yellow metal’s appeal as an inflation hedge and bolster prices.
US house prices increased for their 4th month in a row suggesting that the US housing market recovery may be underway which dampened further hopes of any immediate easing in the US Fed’s monetary policy.
The markets are playing a waiting game and investors are cautious. Thursday’s ECB policy meeting will determine if President Mario Draghi will have the backing he needs to embark on significant policy changes to rescue the region’s financial woes. [Read more...]